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Apple Warns of Serious Consequences if iPhones Get Banned

15 December, 2018, 09:12 | Author: Arnold Gilbert
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In a statement to the wire service, the iPhone maker said, "early next week we will deliver a software update for iPhone users in China addressing the minor functionality of the two patents at issue in the case".

On Monday, a statement from Qualcomm said the Fuzhou Intermediate People's Court had granted the United States chip maker's request for two preliminary injunctions against four subsidiaries of Apple, ordering them to immediately stop selling models from the iPhone 6S to iPhone X in China. According to The Financial Times (via Engadget), Qualcomm is now pushing for the sales ban to also include the Apple iPhone XS, iPhone XS Max, and iPhone XR.

The ruling from a local court - which came as Washington and Beijing are locked in sensitive trade negotiations - pivoted the battle over patent fees to the world's largest mobile arena. But Apple's response underscores the importance of the Chinese market that generates about a fifth of its revenue, at a time demand for Apple's signature device is slowing.

The patent infringement suits are seen as Qualcomm's way of getting back at Apple, after the latter sued it in the U.S. in January 2017 for allegedly overcharging on patents. Apple, which has filed a request for consideration, argues the decision harms China's interests by potentially raising the royalties and fees that phonemakers pay Qualcomm. Since all of the models named in the ban can run iOS 12, Apple argues they aren't infringing on Qualcomm's patents. The injunctions - which heavily favor Qualcomm - essentially put a Chinese sales ban into effect for the Apple iPhone 6S, iPhone 6S Plus, iPhone 7, iPhone 7 Plus, iPhone 8, iPhone 8 Plus, and iPhone X.

Apple did not immediately respond to questions about the reconsideration request and Reuters was not independently able to confirm its authenticity. In order to overcome this scenario in China, the Cupertino giant is now set to push a new update to old iPhones starting early next week.

Tax losses would also be caused to the government, Apple says, as it pays millions in feeds for the devices it sells in the country.

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